Direxion has added three new Direxion Shares ETFs to its existing lineup of multi-directional funds. The new ETFs include three Bear index funds that seek 100% of the inverse of the daily performance (before fees and expenses) of the Barclays Capital U.S. Aggregate Bond Index, NYSE 7-10 Year Treasury Bond Index, and NYSE 20-Year Plus Treasury Bond Index. There is no guarantee that the new ETFs will achieve their objectives.
Direxion’s new Bear 1x ETFs, while not leveraged to a multiple greater than one, do seek daily investment objectives and are therefore still subject to compounding. The funds are intended for use only by sophisticated investors who understand the risks associated with seeking daily investment results and plan to actively monitor and manage their positions in the funds.
"Our new 1x bear funds provide investors with an inverse play on interest rates. Investors now have the option to offset rate movements with 100% inverse exposure with the 1x bear funds. We also continue to offer exposure of 300% with our 3x 7-10 Year (TYD, TYO) and 20-Year Plus Treasury (TMF, TMV) Bull and Bear funds. They can also pursue broader inverse exposure to bonds through the Daily Total Bond Market Bear ETF," said Dan O’Neill (pictured), Direxion Shares’ President.
"With the rising concern from investors about hedging fixed-income positions in their portfolios, we think these funds are timely. As we continue to expand our lineup, we’re focused on helping sophisticated investors capitalise on near-term directional movements while providing exposure to the various markets in which investors have high levels of interest."
The three new Direxion funds are:
Total Bond Market Bear 1x Shares
Barclays Capital US Aggregate Bond
Daily 7-10 Year Treasury Bear 1x Shares
NYSE 7-10 Year Treasury Bond Index
Daily 20+ Year Treasury Bear 1x Shares
NYSE 20 Year Plus Treasury Bond Index